UNITED STATES ANTIMONY CORP 10-Q

ITEM 1. FINANCIAL STATEMENTS UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) September 30, December 31, 2023 2022 ASSETS CURRENT ASSETS: Cash and cash equivalents $ 12,864,992 $ 19,060,378 Certificates of deposit 259,856 259,857 Accounts receivable, net 1,390,437 784,457 Inventories 1,876,555 1,375,068 Prepaid expenses and other current assets 236,966 137,599 Total current assets $ 16,628,806 $ 21,617,359 Properties, plants and equipment, net 12,933,542 12,128,124 Restricted cash for reclamation bonds 57,288 57,288 IVA receivable and other assets 1,307,094 897,679 Total assets $ 30,926,730 $ 34,700,450 LIABILITIES AND STOCKHOLDERS’ EQUITY CURRENT LIABILITIES: Accounts payable $ 606,300 $ 628,803 Accrued liabilities 224,151 212,654 Accrued liabilities – directors 279,244 61,458 Royalties payable 107,937 435,075 Dividends payable - 787,730 Long-term debt, current portion 62,064 94,150 Total current liabilities $ 1,279,696 $ 2,219,870 NON-CURRENT LIABILITIES: Long-term debt, net of current portion 179,892 217,855 Stock payable to directors for services 43,750 61,459 Asset retirement obligations and accrued reclamation costs 342,114 332,011 Total liabilities $ 1,845,452 $ 2,831,195 COMMITMENTS AND CONTINGENCIES (NOTE 8) STOCKHOLDERS’ EQUITY: Preferred stock, $ 0.01 par value; 10,000,000 shares authorized: Series A: 0 shares issued and outstanding - - Series B: 750,000 shares issued and outstanding (liquidation preference $ 965,625 and $ 960,000 , respectively) $ 7,500 $ 7,500 Series C: 177,904 shares issued and outstanding (liquidation preference $ 97,847 both periods) 1,779 1,779 Series D: 0 and 1,692,672 shares issued and outstanding (liquidation preference $ 0 and $ 5,019,410 , respectively) - 16,926 Common stock, $ 0.01 par value; 150,000,000 shares authorized; 107,647,317 shares issued and outstanding at September 30, 2023 and 106,373,341 shares issued and outstanding at December 31, 2022 1,076,472 1,063,732 Additional paid-in capital 63,853,836 64,052,630 Shares to be returned to treasury - ( 202,980 ) Accumulated deficit ( 35,858,309 ) ( 33,070,332 ) Total stockholders’ equity 29,081,278 31,869,255 Total liabilities and stockholders’ equity $ 30,926,730 $ 34,700,450 The accompanying notes are an integral part of these condensed consolidated unaudited financial statements. 3 Table of Contents UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) Three months ended September 30, Nine months ended September 30, 2023 2022 2023 2022 REVENUE $ 2,313,491 $ 2,463,984 $ 7,027,908 $ 9,624,611 COST OF REVENUE 3,374,563 2,033,066 8,328,503 7,339,499 GROSS PROFIT (LOSS) $ ( 1,061,072 ) $ 430,918 $ ( 1,300,595 ) $ 2,285,112 OPERATING EXPENSES General and administrative $ 301,077 $ 108,538 $ 821,036 $ 489,810 Salaries and benefits 228,967 76,811 502,071 222,858 Other operating expenses 66,637 91,405 217,985 109,365 Professional fees 166,808 93,678 504,819 263,682 TOTAL OPERATING EXPENSES $ 763,489 $ 370,432 $ 2,045,911 $ 1,085,715 INCOME (LOSS) FROM OPERATIONS $ ( 1,824,561 ) $ 60,486 $ ( 3,346,506 ) $ 1,199,397 OTHER INCOME (EXPENSE) Interest and investment income $ 176,656 $ 15,064 $ 466,809 $ 54,770 Change in fair value of investments - ( 25,840 ) - ( 119,298 ) Trademark and licensing income 6,117 4,899 25,023 65,674 Other miscellaneous income (expense) ( 2,740 ) ( 4,207 ) 66,697 ( 10,270 ) TOTAL OTHER INCOME (EXPENSE) $ 180,033 $ ( 10,084 ) $ 558,529 $ ( 9,124 ) NET INCOME (LOSS) $ ( 1,644,528 ) $ 50,402 $ ( 2,787,977 ) $ 1,190,273 Preferred dividends ( 1,875 ) ( 11,819 ) ( 5,625 ) ( 35,458 ) Net income (loss) available to common stockholders $ ( 1,646,403 ) $ 38,583 $ ( 2,793,602 ) $ 1,154,815 Net income (loss) per share of common stock: Basic and diluted $ ( 0.02 ) $ Nil $ ( 0.03 ) $ 0.01 Weighted average shares outstanding: Basic 107,647,317 106,293,842 107,519,786 106,258,384 Diluted 107,647,317 106,293,842 107,519,786 106,258,384 The accompanying notes are an integral part of these condensed consolidated unaudited financial statements. 4 Table of Contents UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (UNAUDITED) For the three and nine months ended September 30, 2023 and 2022 Additional Shares to be Total Preferred Stock Common Stock Paid in Returned to Accumulated Stockholders’ Shares Amount Shares Amount Capital Treasury Deficit Equity BALANCE, December 31, 2021 2,620,576 $ 26,205 106,240,361 $ 1,062,402 $ 63,991,459 $ - $ ( 32,711,263 ) $ 32,368,803 Net income - - - - - - 786,252 786,252 BALANCE, March 31, 2022 2,620,576 26,205 106,240,361 1,062,402 63,991,459 - ( 31,925,011 ) 33,155,055 Net income - - - - - - 353,619 353,619 BALANCE, June 30, 2022 2,620,576 26,205 106,240,361 1,062,402 63,991,459 - ( 31,571,392 ) 33,508,674 Issuance of common stock for director fees - - 132,980 133 62,368 - - 62,501 Net income - - - - - - 50,402 50,402 BALANCE, September 30, 2022 2,620,576 $ 26,205 106,373,341 $ 1,062,535 $ 64,053,827 $ - $ ( 31,520,990 ) $ 33,621,577 BALANCE, December 31, 2022 2,620,576 $ 26,205 106,373,341 $ 1,063,732 $ 64,052,630 $ ( 202,980 ) $ ( 33,070,332 ) $ 31,869,255 Common stock buyback and retirement - - ( 418,696 ) ( 4,187 ) ( 198,793 ) 202,980 - - Conversion of Preferred Series D to Common Stock ( 1,692,672 ) ( 16,926 ) 1,692,672 16,927 ( 1 ) - - - Net loss - - - - - - ( 806,984 ) ( 806,984 ) BALANCE, March 31, 2023 927,904 9,279 107,647,317 1,076,472 63,853,836 - ( 33,877,316 ) 31,062,271 Net loss - - - - - - ( 336,465 ) ( 336,465 ) BALANCE, June 30, 2023 927,904 9,279 107,647,317 1,076,472 63,853,836 - ( 34,213,781 ) 30,725,806 Net loss - - - - - - ( 1,644,528 ) ( 1,644,528 ) BALANCE, September 30, 2023 927,904 $ 9,279 107,647,317 $ 1,076,472 $ 63,853,836 $ - $ ( 35,858,309 ) $ 29,081,278 The accompanying notes are an integral part of these condensed consolidated unaudited financial statements. 5 Table of Contents UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) Nine months ended September 30, 2023 2022 CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss) $ ( 2,787,977 ) $ 1,190,273 Adjustments to reconcile net income (loss) to net cash provided (used) by operating activities: Depreciation and amortization 714,302 693,990 Accretion of asset retirement obligation 10,103 14,589 Write down of inventory to net realizable value 883,390 409,919 Provision for losses on receivables 43,560 - Change in fair value of investments - 119,298 Changes in operating assets and liabilities: Accounts receivable, net ( 649,540 ) ( 559,000 ) Inventories ( 1,384,877 ) ( 182,457 ) Prepaid expenses and other current assets ( 99,367 ) ( 187,937 ) IVA receivable and other assets ( 409,414 ) ( 605,047 ) Accounts payable ( 22,503 ) ( 923,490 ) Accrued liabilities 11,497 530 Accrued liabilities – directors 200,077 52,248 Royalties payable ( 327,138 ) - Net cash provided (used) by operating activities $ ( 3,817,887 ) $ 22,916 CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of investments $ - $ ( 13,500,000 ) Proceeds from sales of investments - 407,149 Purchase of properties, plants and equipment ( 1,519,720 ) ( 592,221 ) Net cash used by investing activities $ ( 1,519,720 ) $ ( 13,685,072 ) CASH FLOWS FROM FINANCING ACTIVITIES: Principal payments of long-term debt $ ( 70,049 ) $ ( 42,080 ) Dividends paid ( 787,730 ) - Net cash used by financing activities $ ( 857,779 ) $ ( 42,080 ) NET DECREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH $ ( 6,195,386 ) $ ( 13,704,236 ) CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF PERIOD $ 19,117,666 $ 21,420,329 CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD $ 12,922,280 $ 7,716,093 NON-CASH FINANCING AND INVESTING ACTIVITIES: Common stock retirement $ 202,980 $ - Conversion of Preferred Series D to Common Stock $ 16,927 $ - Equipment purchased with note payable $ - $ 161,600 Issuance of common stock for directors fees $ - $ 62,501 The accompanying notes are an integral part of these condensed consolidated unaudited financial statements. 6 Table of Contents UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) September 30, 2023 NOTE 1 - NATURE OF OPERATIONS United States Antimony Corporation and its subsidiaries in the U.S. and Mexico (“USAC”, the “Company”, “Our”, or “we”) sell processed antimony, zeolite, and precious metals products in the U.S. and abroad. The Company processes antimony ore in the U.S. and Mexico primarily into antimony oxide and antimony metal at its facilities in Montana and Mexico. Our antimony oxide is used to form a flame-retardant system for plastics, rubber, fiberglass, textile goods, paints, coatings and paper, as a color fastener in paint, and as a phosphorescent agent in fluorescent light bulbs. Our antimony metal is used in bearings, storage batteries, and ordnance. In its operations in Idaho, the Company mines and processes zeolite, a group of industrial minerals used in soil amendment and fertilizer, water filtration, sewage treatment, nuclear waste and other environmental cleanup, odor control, gas separation, animal nutrition, and other miscellaneous applications. NOTE 2 - BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES In the opinion of the management, the accompanying unaudited condensed consolidated financial statements contain all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of its financial position as of September 30, 2023, and its results of operations and cash flows for the three and nine months ended September 30, 2023 and 2022. The condensed consolidated balance sheet as of December 31, 2022, was derived from audited annual financial statements but does not contain all of the footnote disclosures from the annual financial statements. Operating results for the three and nine-month periods ended September 30, 2023 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2023. These unaudited interim financial statements have been prepared by management in accordance with generally accepted accounting principles used in the United States of America (“U.S. GAAP”). These unaudited interim financial statements should be read in conjunction with the annual audited financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 filed with the Securities and Exchange Commission on July 18, 2023. This summary of significant accounting policies of the Company is presented to assist in understanding the Company’s financial statements. These accounting policies conform to U.S. GAAP and have been consistently applied in the preparation of the financial statements. Reclassifications Certain reclassifications have been made to conform prior period amounts to the current presentation. These reclassifications have no effect on the results of operations, stockholders’ equity and cash flows as previously reported. Recent Accounting Pronouncements Management does not believe that any recently issued but not yet effective, accounting pronouncements, if currently adopted, would have a material effect on the Company’s financial statements. Recently Adopted Accounting Pronouncements: In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016 - 13, “ Financial Instruments – Credit Losses (Topic 326 ): Measurement of Credit Losses on Financial Instruments ”, which requires entities to use a forward-looking approach based on expected losses to estimate credit losses on certain types of financial instruments, including trade receivables. The FASB has subsequently issued updates to the standard to provide additional clarification on specific topics. The Company adopted the ASU on January 1, 2023 and determined that it had no material impact on the Company’s unaudited condensed consolidated financial statements and disclosures. 7 Table of Contents UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) September 30, 2023 NOTE 3 – EARNINGS PER SHARE Basic Earnings Per Share (“EPS”) is computed as net income (loss) available to common stockholders divided by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur from common shares issuable through convertible preferred stock, stock options, and warrants. At September 30, 2023 and 2022, the potentially dilutive common stock equivalents not included in the calculation of diluted earnings per share as their effect would have been anti-dilutive were as follows: September 30, September 30, 2023 2022 Warrants 12,346,215 12,346,215 Convertible preferred stock - 1,692,672 TOTAL POSSIBLE DILUTIVE SHARES 12,346,215 14,038,887 NOTE 4 – REVENUE RECOGNITION Products consist of the following: · Antimony: includes antimony oxide, antimony trisulfide, and antimony metal · Zeolite: includes coarse and fine zeolite crushed in various sizes · Precious metals: includes unrefined and refined gold and silver Sales of products for the three months ended September 30, 2023 and 2022 were as follows: For the three months ended September 30, September 30, 2023 2022 Antimony $ 1,641,666 $ 1,671,301 Zeolite 671,825 792,683 Precious metals - - TOTAL REVENUE $ 2,313,491 $ 2,463,984 Sales of products for the nine months ended September 30, 2023 and 2022 were as follows: For the nine months ended September 30, September 30, 2023 2022 Antimony $ 4,844,466 $ 6,972,312 Zeolite 1,941,009 2,487,116 Precious metals 242,433 165,183 TOTAL REVENUE $ 7,027,908 $ 9,624,611 The Company’s trade accounts receivable balance related to contracts with customers was $ 1,390,437 at September 30, 2023 and $ 784,457 at December 31, 2022. The Company’s allowance for doubtful accounts related to trade accounts receivables was $ 75,000 at September 30, 2023 and $ 31,440 at December 31, 2022. The Company’s products do not involve any warranty agreements and product returns are not typical. 8 Table of Contents UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) September 30, 2023 NOTE 5 – INVENTORIES Inventories at September 30, 2023 and December 31, 2022 consisted primarily of finished antimony metal and oxide products, antimony ore and concentrates, and finished zeolite products. Inventories are stated at the lower of first-in, first-out cost or estimated net realizable value. Finished antimony metal and oxide products and finished zeolite products costs include raw materials, direct labor, processing facility overhead costs and freight. Inventories at September 30, 2023 and December 31, 2022 were as follows: September 30, 2023 December 31, 2022 Antimony Metal $ 503,873 $ 142,230 Antimony Oxide 128,945 509,643 Antimony Ore and Concentrates 867,049 545,373 Total antimony $ 1,499,867 $ 1,197,246 Zeolite 376,688 177,822 TOTAL INVENTORIES $ 1,876,555 $ 1,375,068 At September 30, 2023 and December 31, 2022, inventories were valued at cost, except for inventory related to Mexican operations, which was valued at net realizable value because the production costs of the Mexican inventory were greater than the amount the Company expected to receive on the sale of antimony contained in inventory. The adjustment to inventory for net realizable value was $ 883,390 and $ 409,919 for the nine months ended September 30, 2023 and 2022, respectively. The adjustment to inventory for net realizable value was $ 427,152 and $ 273,083 for the three months ended September 30, 2023 and 2022, respectively. Antimony oxide and metal inventory consisted of finished product held at the Company’s plants in Montana and Mexico. Antimony ore and concentrates were held primarily at sites in Mexico. The Company’s zeolite inventory consisted of saleable zeolite material at the Company’s plant in Idaho. NOTE 6 – PROPERTIES, PLANTS AND EQUIPMENT The major components of the Company’s properties, plants and equipment by segment at September 30, 2023 and December 31, 2022 were as follows: Antimony Segment Zeolite Segment Precious Metals September 30, 2023 USAC USAMSA BRZ Segment TOTAL Plant and equipment $ 1,822,775 $ 9,459,098 $ 5,464,280 $ 1,347,912 $ 18,094,065 Buildings 243,248 875,024 2,025,043 - 3,143,315 Land and other 2,431,387 2,886,037 16,753 - 5,334,177 Total $ 4,497,410 $ 13,220,159 $ 7,506,076 $ 1,347,912 $ 26,571,557 Accumulated depreciation ( 2,796,806 ) ( 6,625,450 ) ( 3,582,124 ) ( 633,635 ) ( 13,638,015 ) Properties, Plants, and Equipment, Net $ 1,700,604 $ 6,594,709 $ 3,923,952 $ 714,277 $ 12,933,542 Antimony Segment Zeolite Segment Precious Metals December 31, 2022 USAC USAMSA BRZ Segment TOTAL Plant and equipment $ 1,760,926 $ 9,090,860 $ 4,996,216 $ 1,347,912 $ 17,195,914 Buildings 243,248 870,534 1,047,023 - 2,160,805 Land and other 2,431,387 2,796,037 16,753 - 5,244,177 Construction in progress - 280,406 170,535 - 450,941 Total $ 4,435,561 $ 13,037,837 $ 6,230,527 $ 1,347,912 $ 25,051,837 Accumulated depreciation ( 2,767,803 ) ( 6,212,433 ) ( 3,392,861 ) ( 550,616 ) ( 12,923,713 ) Properties, Plants, and Equipment, Net $ 1,667,758 $ 6,825,404 $ 2,837,666 $ 797,296 $ 12,128,124 9 Table of Contents UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) September 30, 2023 At September 30, 2023 and December 31, 2022, the Company had $ 280,406 and $ 1,117,041 , respectively, of assets that were not yet placed in service and were not yet depreciated. NOTE 7 – DEBT Long term debt at September 30, 2023 and December 31, 2022 was as follows: September 30, 2023 December 31, 2022 Promissory note payable to First Security Bank of Missoula, bearing interest at 2.25%, payable in 59 monthly installments of $1,409 with a final payment of $152,726 maturing November 9, 2026; collateralized by a lien on Certificate of Deposit $ 192,589 $ 201,908 Installment contract payable to Caterpillar Financial Services, bearing interest at 6.65%, payable in 24 monthly installments of $7,210 maturing April 28, 2024; collateralized by 2007 Caterpillar 740 articulated truck 49,367 110,097 Total debt $ 241,956 $ 312,005 Less current portion of debt ( 62,064 ) ( 94,150 ) Long term portion of debt $ 179,892 $ 217,855 At September 30, 2023, principal payments on debt were due as follows: Twelve months ending September 30, Principal payment 2024 $ 62,064 2025 $ 12,998 2026 $ 13,293 2027 $ 153,601 $ 241,956 NOTE 8 – COMMITMENTS AND CONTINGENCIES The Company follows U.S. GAAP guidance in determining its accruals and disclosures with respect to loss contingencies and evaluates such accruals and contingencies for each reporting period. Accordingly, estimated losses from loss contingencies are accrued by a charge to income when information available prior to issuance of the financial statements indicates that it is probable that a loss could be incurred, and the amount of the loss can be reasonably estimated. Legal expenses associated with the contingency are expensed as incurred. If a loss contingency is not probable or reasonably estimable, disclosure of the loss contingency is made in the financial statements when it is at least reasonably possible that a material loss could be incurred. Historically, from time to time, the Company is assessed fines and penalties by the Mine Safety and Health Administration (“MSHA”). Using appropriate regulatory channels, management may contest these proposed assessments. At September 30, 2023 and December 31, 2022, the Company had no accrued liabilities relating to such assessments. Bear River Zeolite Company (“BRZ”), a wholly owned subsidiary of the Company, received twelve significant and substantial citations from MSHA in September and October of 2023. BRZ rectified the matters noted in eight of the twelve citations and received termination dates for these eight citations from MSHA. The Company is working to rectify the four remaining citations; however, the outcome of these citations as well as the impact on the Company’s results of operations or financial position is unknown. The Company pays various royalties that, on a combined basis, generally vary around 8 % to 13 % of zeolite products sold. At September 30, 2023 and December 31, 2022, the Company had accrued royalties payable of $ 107,937 and $ 435,075 , respectively. The decrease in royalties payable in 2023 was primarily due to the Company finalizing its estimates and paying a royalty obligation in 2023 that had been accumulating since 2016. 10 Table of Contents UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) September 30, 2023 On August 8, 2022, the Company executed a preliminary Purchase Option Agreement (the “Agreement”) with SB Wadley SA de CV (“Wadley”) whereby the Company leases, with an option to acquire, mining claims located in Mexico known as the Wadley Property. Under the Agreement, the Company agreed to pay Wadley eight monthly installments of $10,000 plus VAT for the right to mine and conduct geological and resource studies as due diligence and exploration on the Wadley Property. At the end of such eight-month period, should the Company choose to exercise its option to acquire following due diligence and assessment of geological and resource studies, the Company agreed to pay Wadley $2,230,000 and seven annual payments of $1,160,000. The due diligence period under the Agreement was extended to October 15, 2023 . After evaluation in October 2023 of Wadley Property information and the Agreement, the Company officially notified Wadley on October 12, 2023 that it did not intend to acquire the Wadley Property and terminated this Agreement. During the fourth quarter of 2023, the Company expects to incur a loss on disposal of assets of approximately $ 130,000 related to the termination of this Agreement. Mexican Tax Assessment In 2015, the Mexican tax authority (“SAT”) initiated an audit of the USAMSA’s 2013 income tax return. In October 2016, as a result of its audit, SAT assessed the Company $13.8 million pesos, which was approximately $666,400 in U.S. Dollars (“USD”) as of December 31, 2016. SAT’s assessment was based on the disallowance of specific costs that the Company deducted on the 2013 USAMSA income tax return. The assessment was settled in 2018 with no assessment due from the Company. In early 2019, the Company was notified that SAT re-opened its assessment of USAMSA’s 2013 income tax return and, in November 2019, SAT assessed the Company $16.3 million pesos, which was approximately $795,000 USD as of December 31, 2021. Management reviewed the 2019 assessment notice from SAT and, similar to the earlier assessment, believes the findings have no merit. An appeal was filed by the Company in November 2019 suspending SAT from taking immediate action regarding the assessment. The Company posted a guarantee of the amount in March 2020 as is required under the appeal process. In August 2020, the Company filed a lawsuit against SAT for resolution of the process and, in December 2020, filed closing arguments. In 2022, the Mexican court ruled against the Company in the above matter. The Company subsequently appealed the ruling, which is still pending. As of September 30, 2023, the updated SAT assessment was approximately $22 million pesos, which was approximately $1,262,000 USD, comprising $343,000 of unpaid income taxes and $919,000 of interest and penalties . Management, along with its legal counsel, assessed the possible outcomes for this tax audit and believes, based on discussions with its tax attorneys located in Mexico, that the most likely outcome will be that the Company will be successful in its appeal resulting in no tax due. Management determined that no amount should be accrued at September 30, 2023 or December 31, 2022 relating to this potential tax liability. However, there can be no assurance that the Company’s ultimate liability, if any, will not have a material adverse effect on the Company’s results of operations or financial position. If the SAT audit is resolved in a manner inconsistent with management expectations, the Company will record changes to tax liabilities and tax expense associated with the assessment. Also, the Company will recognize penalties associated with the assessment in general and administrative expense and interest associated with the assessment will be recorded as interest expense. NOTE 9 – STOCKHOLDERS’ EQUITY On January 25, 2023, the holders of 1,692,672 shares of Series D Preferred stock converted their respective preferred shares and the Company issued 1,692,672 shares of common stock. The Company also paid the holders $ 787,730 for dividends payable as declared on November 28, 2022. 1,590,672 shares of the 1,692,672 shares of Series D Preferred stock that were converted and $ 740,261 of the $ 787,730 of dividends paid related to the estate of John Lawrence, who was a prior President and Chairman of the Company. On January 26, 2023, in conjunction with its share repurchase plan, the Company returned to treasury and cancelled 418,696 of its common shares which were repurchased prior to December 31, 2022 for $202,980 . 11 Table of Contents UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) September 30, 2023 Common stock warrants No warrants were issued, expired, or exercised during the nine months ended September 30, 2023 and 2022. The composition of the Company’s warrants outstanding at September 30, 2023 and December 31, 2022 were as follows: Number of warrants Exercise Price Expiration Date Remaining life in years 2,285,715 0.46 7/31/25 1.84 804,000 0.46 1/27/26 2.33 7,650,000 0.85 8/3/26 2.84 1,606,500 0.85 2/1/26 2.34 12,346,215 NOTE 10 – BUSINESS SEGMENTS The Company is organized and managed with four business segments, which represent our operating units: United States antimony operations, Mexican antimony operations, precious metals recovery and United States zeolite operations. The Puerto Blanco mill and the Madero smelter at the Company’s Mexico operation bring antimony up to an intermediate or finished stage, which may be sold directly to customers in the United States or shipped to the United States operation for finishing at the Company’s plant near Thompson Falls, Montana. The Puerto Blanco mill in Mexico is the site of our crushing and flotation plant, and a cyanide leach plant which recovers precious metals after the ore goes through the crushing and flotation cycles. A precious metals recovery plant is operated in conjunction with the antimony processing plant at Thompson Falls, Montana, where a 99% precious metals mix is produced. The zeolite operation produces zeolite near Preston, Idaho. Almost all sales of products from the United States antimony and zeolite operations are to customers in the United States. Sales to foreign customers are primarily to customers in Canada. Total Assets: September 30, December 31, 2023 2022 Antimony United States $ 16,253,362 $ 21,636,386 Mexico 9,100,457 8,484,131 Subtotal antimony $ 25,353,819 $ 30,120,517 Precious metals United States 201,338 172,004 Mexico 553,981 625,292 Subtotal precious metals $ 755,319 $ 797,296 Zeolite $ 4,817,592 $ 3,782,637 TOTAL ASSETS $ 30,926,730 $ 34,700,450 12 Table of Contents UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) September 30, 2023 Capital expenditures: For the three months ended September 30, For the nine months ended September 30, 2023 2022 2023 2022 Antimony United States $ - $ 1,655 $ 61,849 $ 81,931 Mexico 30,000 151,559 182,322 163,125 Subtotal antimony $ 30,000 $ 153,214 $ 244,171 $ 245,056 Precious metals - - - 17,518 Zeolite 141,864 56,008 1,275,549 491,247 Total capital expenditures $ 171,864 $ 209,222 $ 1,519,720 $ 753,821 Segment operations for the three months ended September 30, 2023 Antimony - USA Antimony -Mexico Total Antimony Precious Metals Zeolite Total Total revenues $ 1,391,733 $ 249,933 $ 1,641,666 $ - $ 671,825 $ 2,313,491 Depreciation and amortization $ 10,360 $ 137,735 $ 148,095 $ 27,673 $ 73,193 $ 248,961 Income (loss) from operations $ 47,534 $ ( 1,465,000 ) $ ( 1,417,466 ) $ ( 27,673 ) $ ( 379,422 ) $ ( 1,824,561 ) Other income $ 180,033 NET LOSS $ ( 1,644,528 ) Segment operations for the three months ended September 30, 2022 Antimony - USA Antimony -Mexico Total Antimony Precious Metals Zeolite Total Total revenues $ 1,671,301 $ - $ 1,671,301 $ - $ 792,683 $ 2,463,984 Depreciation and amortization $ 10,262 $ 154,238 $ 164,500 $ 27,673 $ 50,610 $ 242,783 Income (loss) from operations $ 802,817 $ ( 817,746 ) $ ( 14,929 ) $ ( 27,763 ) $ 103,088 $ 60,486 Other expense $ ( 10,084 ) NET INCOME $ 50,402 Segment operations for the nine months ended September 30, 2023 Antimony - USA Antimony -Mexico Total Antimony Precious Metals Zeolite Total Total revenues $ 4,356,077 $ 488,389 $ 4,844,466 $ 242,433 $ 1,941,009 $ 7,027,908 Depreciation and amortization $ 29,002 $ 413,019 $ 442,021 $ 83,019 $ 189,262 $ 714,302 Income (loss) from operations $ ( 207,907 ) $ ( 2,877,838 ) $ ( 3,085,745 ) $ 159,414 $ ( 420,175 ) $ ( 3,346,506 ) Other income $ 558,529 NET LOSS $ ( 2,787,977 ) Segment operations for the nine months ended September 30, 2022 Antimony - USA Antimony -Mexico Total Antimony Precious Metals Zeolite Total Total revenues $ 6,144,490 $ 827,822 $ 6,972,312 $ 165,183 $ 2,487,116 $ 9,624,611 Depreciation and amortization $ 30,832 $ 436,431 $ 467,263 $ 82,867 $ 143,860 $ 693,990 Income (loss) from operations $ 2,314,965 $ ( 1,477,387 ) $ 837,578 $ 82,316 $ 279,503 $ 1,199,397 Other expense $ ( 9,124 ) NET INCOME $ 1,190,273 13 Table of Contents